AR/VR Banking Use Cases 5
Future Impacts of AR/VR on Banking & Finance
1. New Jobs
- The use of AR within the banking and financial will result in the creation of new types of jobs in the future.
- An example of a job title of the future involving AR is Mixed Reality Experience Designer
. That job will focus on "[o]verlaying our physical world with a layer of digital data . . . to create any imaginable character or object and locate them in physical space as if they were real . . . [which] will likely be used to carry out some of our banking needs in the future."
- Skills that will be necessary for that job include 3D mechanics, branding, aesthetic design, and user experience.
- The aforementioned type of work within banking and finance is projected to "be a major new employment area for the future."
2. Fewer Branch Locations
- A future impact of AR/VR on banking and finance is that there are projected to be far fewer brick-and-mortar banking branches, as a result of such technological advancements.
- Some sources opine that banking branches might no longer exist in the future, as a result of technological advancements and changing consumer preferences for tech-enabled services. As one source put it, "[w]ith the help of AR and VR, the banking sector may get rid of the existing brick and mortar banking branches, thereby saving money and time, while simultaneously offering an improved banking experience to people."
3. Data Visualization
- AR and VR are expected to play an important role in the future of data visualization for banking and finance professionals.
- The Microsoft HoloLens, developed by Citi, is an example of how analysts and traders can/will use AR and VR to visualize data in the future, both more efficiently and comprehensively.
4. Retaining Younger Customers
- A future impact of VR technology on banking and finance is that institutions who embrace such capabilities will be more likely to retain younger customers in the years ahead. The impetus for banks and financial institutions to retain younger customers has been described as "an issue that is becoming increasingly urgent."
- Among millennials, 73% "consider tech companies like Google, Amazon, Apple, PayPal, or Square as their main source for new financial offerings." However, by launching "exciting new VR experiences that change how people think of traditional banking, and modernize the entire process[,]" financial institutions and banks can try to recapture the attention of younger consumers going forward and thus attract them as customers.
5. Recruiting & Training
- VR/AR technology is also expected to impact the recruiting and training processes within banking and finance.
- For example, VR is expected to "eliminate the need for the scheduling of live interviews" within banking and finance.
- Job candidates will also be able to be simultaneously "test[ed] and hire[d]" by banking and financial institutions through the use of avatars.
Ideas for Applying AR/VR in the Future
1. Virtual Branches
- A prominent idea for applying AR/VR technology in the future involves creating virtual banking branches.
- According to financial services institutions BBVA, "the concept of virtual offices or virtual customer service centers keeps gaining momentum."
- At such virtual offices, staff members would be avatars capable of interacting with customers just like they would in-person.
2. Holographic Workstations
- An idea for applying AR/VR technology in the future for banking and financial institutions involves holographic workstations.
- An article from Venture Beat stated that "[a]s the need to rapidly grasp complex trends increases, and the amount of data available becomes greater, AR steps in to bridge the gap between machine data analysis and human understanding.
AR-enabled data visualization can help analysts understand complex data streams and make decisions quickly."
- This link is to a video showing how a holographic workstation functions.
- An early example of these technologies being used within banking and finance is Salesforce's headset called Oculus Rift. Nonetheless, there is much still to come with regard to holographic workstations in the future, as "many other finance tech data visualization tools are on the horizon."
3. Scan for Service
- A future idea for applying AR/VR technology within banking and finance involves applications of AR that are capable of "assisting people with information about their bank account, loan transactions, online payments, and so on by merely scanning the credit or debit card through their smartphones."
- VR will be used in the future to provide office tours remotely to new hires within banking and finance, so that they can learn about the company's culture without even visiting in-person.
- With VR, several job candidates can be simultaneously interviewed by one recruiter "with the recruiter’s virtual avatar" which can save banking and financial institutions' personnel resources and time.
- VR and AR will also be used to train new staff members at banking and financial institutions "by immersing them in a virtual space where the staff gets to experience, first hand, how customers engage with the bank’s services and how their experiences shape up."
We identified future impacts that AR/VR technology will have on banking and finance by reviewing numerous articles published by a variety of media, tech, and finance sources. Some of the sources we consulted included BBVA, Venture Beat, FinExtra, and Allerin. We used that same research approach to identify ideas for applying AR/VR technology within banking and finance in the future. We found considerable overlap between the future impacts of and ideas for applying AR/VR technology within banking and finance. For example, a future impact of AR/VR technology within banking and finance is that there will be less banking branches, as a result. Simultaneously, an idea for applying AR/VR technology in the future involves the creation of virtual banking branches where customers can interact with avatars capable of providing the same services available at traditional banking branches. For that reason, we distinguished between future ideas and future impacts by categorizing our findings into two different sections.